Company Valuation: NetEase, Inc.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 417,313 314,113 398,949 412,006 610,925 518,797 - -
Change - -24.73% 27.01% 3.27% 48.28% -15.08% - -
Enterprise Value (EV) 1 349,811 251,355 296,333 297,415 477,502 341,829 315,989 290,361
Change - -28.15% 17.89% 0.37% 60.55% -28.41% -7.56% -8.11%
P/E 25.6x 16.4x 14.1x 14.2x 18.4x 13.1x 11.9x 10.8x
PBR 4.48x 3.16x 3.3x 3x 3.83x 2.8x 2.46x 2.19x
PEG - 0.7x 0.3x 9.18x 1.3x 0.7x 1.2x 1x
Capitalization / Revenue 4.76x 3.26x 3.86x 3.91x 5.42x 4.29x 3.98x 3.69x
EV / Revenue 3.99x 2.6x 2.86x 2.82x 4.24x 2.83x 2.42x 2.07x
EV / EBITDA 17.8x 11.2x 9.63x 9.29x 12.5x 7.34x 6.34x 5.31x
EV / EBIT 21.3x 12.8x 10.7x 10.1x 13.3x 7.83x 6.67x 5.58x
EV / FCF 16x 10x 8.97x 7.93x 9.8x 7.53x 6.96x 5.24x
FCF Yield 6.24% 9.97% 11.1% 12.6% 10.2% 13.3% 14.4% 19.1%
Dividend per Share 2 1.481 1.916 3.688 3.751 4.113 4.379 5.489 6.251
Rate of return 1.15% 1.89% 2.89% 2.88% 2.13% 2.7% 3.39% 3.86%
EPS 2 5.01 6.17 9.05 9.19 10.48 12.32 13.57 14.99
Distribution rate 29.6% 31.1% 40.8% 40.8% 39.2% 35.5% 40.5% 41.7%
Net sales 1 87,606 96,496 103,468 105,295 112,626 120,907 130,347 140,459
EBITDA 1 19,693 22,487 30,764 32,002 38,082 46,576 49,870 54,678
EBIT 1 16,417 19,629 27,709 29,584 35,835 43,657 47,402 52,032
Net income 1 16,857 20,338 29,417 29,698 33,760 39,363 43,118 46,960
Net Debt 1 -67,502 -62,758 -102,617 -114,592 -133,423 -176,969 -202,809 -228,437
Reference price 2 128.31 101.28 127.62 130.05 192.85 162.06 162.06 162.06
Nbr of stocks (in thousands) 3,252,359 3,101,359 3,125,972 3,167,959 3,167,959 3,201,251 - -
Announcement Date 24/02/22 23/02/23 29/02/24 20/02/25 11/02/26 - - -
1CNY in Million2CNY
Estimates

P/E, Detailed evolution

P/E (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
13.15x2.83x7.34x2.7% 76.62B
16.25x2x7.02x2.64% 10.91B
11.06x1.61x4.73x0.94% 7.28B
12.72x2.17x9.99x6.39% 5.9B
24.61x2.08x10.37x1.86% 5.52B
13x3.07x7.68x5.87% 3.69B
14.19x4.52x10.97x3.72% 3.07B
10.38x1.07x4.9x0.57% 3.03B
11.14x1.73x7.37x8.96% 2.81B
9.59x1.79x5.49x0.94% 2.55B
Average 13.61x 2.29x 7.59x 3.46% 12.14B
Weighted average by Cap. 13.64x 2.57x 7.42x 2.91%

Y-o-Y evolution of P/E

Historical PBR trend

Evolution Enterprise Value / Sales

Change in Enterprise Value/EBITDA

Year-on-year evolution of the Yield

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